On the last day of session, the state Senate approved stronger oversight of economic development and job creation programs. The bill, which previously passed the House, now goes to Gov. Dannel Malloy for action.
The legislation shifts the responsibility for preparing the three-year evaluation of the state’s business recruitment and retention tax credits and abatements from the state Department of Economic and Community Development (DECD) to the Program Review and Investigation Committee.
The new law would also change the report’s scope, and requires the Appropriations and Finance committees to hold one or more public hearings on the report. The changeover will happen in 2017. Current law requires DECD submit a report to the Finance, Revenue and Bonding Committee every three years to assess the economic and fiscal impact of the state’s tax credit and abatement programs.
The legislation, if signed by the governor, will streamline the reporting process, focus more emphasis on the most useful data, shift the analysis to a state office other than the one that oversees the programs in order to assure the most unbiased reporting and increase legislative oversight and input from stakeholders, state Comptroller Kevin Lembo said in a statement.
“This legislative action recognizes that good economic policy can only come after good analysis and data,” Lembo said. “The state provides hundreds of millions of dollars in tax credits to Connecticut businesses every year. Now more than ever, Connecticut must make evidence and data-based decisions about its economic development strategies — to verify the facts about what incentives are working and what resources should be deployed to more effective investments.”
